Born in Placerita Canyon, entrepreneur Mike Bjorkman entered the real estate business in 1991. He immediately became a top-ranked agent with Re/Max and Keller Williams. Flash forward to today, and he oversees no less than 300 SmartHome agents at four different offices – so to say that he knows what he’s doing when it comes to business is an understatement.
Over the last few years, Bjorkman has watched cryptocurrency take investors by storm. Also commonly referred to as “crypto,” this type of digital currency where transactions are verified and maintained via the blockchain as opposed to a centralized authority like you would with a traditional bank.
Naturally, people have many questions – not just about how to invest in cryptocurrency, but about how to make the most of that investment over the long term.
Thankfully, Mike Bjorkman has the answers.
Succeeding in Crypto: An Overview
Even though cryptocurrency may mark something of a 21st-century departure from traditional investing. One of the most important best practices to follow is maintaining the most balanced portfolio possible.
While Bitcoin may be the type of cryptocurrency that is on everyone’s mind right now, as the old saying goes, “you shouldn’t put all of your eggs in one basket.” The crypto market is nothing if not volatile – which is understandable given the relatively new nature of what is going on.
For the best results, you should research various other types of crypto coins and make sure that you’re spreading your investments around as evenly as possible. That way, if the value of one top of coin declines, it won’t necessarily be as big of a blow to your entire portfolio as it would have otherwise been.
Another important best practice that Mike Bjorkman urges people to follow involves investing with an eye toward liquidity.
If you’ve been following the news recently, you’re no doubt aware that the crypto market moves incredibly quickly. What is a verified “truth” one day could be shattered the next, and it requires a proactive eye to really succeed on these terms.
Because of that, you want to make sure that, if necessary, you can get your money out (or at the very least move it around) as soon as possible should something happen.
One of the most important metrics to pay attention to when investing in any type of cryptocurrency has to do with trading volumes. Essentially, you’re looking at the overall demand for a particular type of coin.
A new type of crypto coin may show great potential, but if trading volumes are low, that means there isn’t much in the way of interest – at least not yet. As the name suggests, trading volumes show how much of a crypto coin is being bought and sold.
Mike Bjorkman notes that you should prioritize forms of cryptocurrency that allow you to A) get in early, and that is B) clearly on the rise as per trading volumes to make the most significant positive impact on your portfolio moving forward.